The venture capital branch of Saskatchewan’s Conexus Credit Union is investing in an AI platform that streamlines small-business loan applications.
The news: Regina-based Conexus Venture Capital (CVC), the investment branch of Conexus Credit Union, announced today an investment in Vancouver’s Judi.ai. Judi is a FinTech platform that uses AI to help credit unions and community banks automate and accelerate small- and medium-business lending. Neither VCV nor Judi disclosed the exact dollar figure, but said the capital will be used to scale the company’s US expansion, as well as product development, customer service, and marketing development.
From the source: “We feel like there’s a great opportunity for [cooperative financial institutions] to win the small business lending market with an AI solution like Judi,” said CVC managing director Jordan McFarlen. “Just the impressive work they’re doing and the rapid expansion they’re looking to do in the US market was extremely attractive.”
Following the thread: While neither organization disclosed the amount of the investment, capital comes via CVC’s Fund 2, a $30 million portfolio with a focus on Canadian, early-stage companies. The fund, according to McFarlen, typically invests anywhere between $500,000 and $3 million.
Alongside CVC, McFarlen said the round saw participation from Unitus Community Credit Union in Oregon, as well as several returning investors from Judi’s cap sheet. Both CVC and Unitus have previously been customers of Judi, using the software to streamline lending processes on the credit union side of their business.
Final thought: Investments from clients like CVC and Unitus are indicative of a broader trend in cooperative banking, according to Judi CEO Gord Baizley. Baizley said he believes this investment shows that credit unions and community banks are prioritizing different types of lending, and that coming onside as an investor shows the companies Judi serves are on board with a vision of a large, more multifaceted cooperative financial market.
BetaKit’s Prairies reporting is funded in part by YEGAF, a not-for-profit dedicated to amplifying business stories in Alberta.
Photo courtesy of Conexus Venture Capital.
